AI Revolutionizes IT Efficiency

Sydney, Sept 29: Freshworks Inc. (NASDAQ: FRSH) has released its second annual “State of Workplace Technology” report, revealing a remarkable 71 per cent increase in the number of software applications managed by IT teams over the past year.
This surge in software complexity has prompted IT professionals, including senior leaders and younger generations, to increasingly embrace artificial intelligence (AI) to streamline operations and boost efficiency.
Impressively, 86 per cent of IT professionals report that their organizations are already leveraging AI.

AI: A Saving Grace

Despite the growth in IT departments, Freshworks’ report suggests that companies in the U.S. could save approximately AU$23,430 (US$15,000) per IT employee annually by harnessing AI to eliminate time-consuming, repetitive tasks. This translates to substantial potential savings, with an enterprise-sized company of at least 5,000 employees and an average of 200 IT professionals potentially saving at least AU$4.69 million (US$3 million) annually through AI adoption.

Managing Software Complexity

IT professionals are now tasked with managing more software applications than ever before. The report indicates a 71 per cent increase in the number of software applications on IT teams’ work computers over the last year. Surprisingly, despite this increase, IT professionals report using only a fraction of the available applications daily—just eight out of 24, compared to half in 2022.

Efficiency Takes the Front Seat

Efficiency and ease of use are top priorities for IT teams when selecting business software, ranking higher than considerations such as feature suites, reliability, and cost-effectiveness.

AI’s Role in Efficiency

The report highlights the significant impact of AI in eliminating repetitive tasks. Nearly half (49 per cent) of IT professionals agree that AI frees up time typically spent on repetitive chores, enabling them to focus on more complex and meaningful work. IT professionals estimate that they could reclaim more than five hours per week by leveraging AI to complete these repetitive tasks.

The Leadership’s Embrace

Senior IT leaders are at the forefront of AI adoption. The report reveals that directors and above show a higher level of usage and organizational support for AI. Notable findings include:

• 70 per cent of IT directors and above say their companies actively encourage the use of AI, compared to 44 per cent of team leads/managers and 21 per cent of individual contributors.
• 91 per cent of IT directors and above currently use AI to support their workload, while 66 per cent of team leads/managers and 33 per cent of individual contributors follow suit.
• Younger generations, particularly Millennials and Gen Z, play a pivotal role in AI adoption, with 81 per cent of Millennials and 75 per cent of Gen Z IT professionals using AI to support their workload, compared to 57 per cent of Gen X and 27 per cent of Boomers.

Looking Ahead

Prasad Ramakrishnan, CIO at Freshworks, emphasizes the importance of smart, simplified technology paired with the power of AI in driving productivity and efficiency. He believes that IT leaders who embrace automation and technological agility to reduce complexity will position their teams for success.
As the world of workplace technology continues to evolve, this report highlights the transformative potential of AI, offering IT leaders an opportunity to not only manage software complexity but also drive significant cost savings and efficiency gains.